Federal court rejects FTC challenge to state-approved health care partnership

The U.S. District Court of the Eastern District of Louisiana Sept. 27 ruled in favor of a LCMC Health and Tulane University partnership, concluding that the Certificate of Public Advantage granted by Louisiana exempts the transaction from federal antitrust laws. Under the partnership, Tulane Medical Center, Lakeview Regional Medical Center and Tulane Lakeside Hospital have joined LCMC Health. 
 
"We are pleased to announce that the District Court has recognized the value of our partnership with Tulane University and upheld the State of Louisiana's approval,” said  LCMC Health CEO Greg Feirn. “Earlier this year, LCMC Health and the Attorney General Jeff Landry took a strong stance by taking legal action to safeguard this significant collaboration. This partnership underwent a thorough review and approval from the Louisiana Department of Justice, which has been validated by the court’s decision.”
 
The AHA had urged  the FTC to abandon its unprecedented policy to enforce the Hart-Scott-Rodino Act in state-approved mergers and acquisitions.